How to Find Low Priced Stocks

Low priced stocks are easy to find but if you are a newbie starting out on stock trading and investment, you should take the time and do some solid research before you get yourself into any trouble. Low priced stocks, which are referred to as penny stocks in the stock market, are often the hot pick as many investors believe that buying multiple penny stocks will make their portfolio safer and the risks will be minimized. Despite the price that attracts a lot of investors; low priced stocks carry several risks as well because they are generally illiquid and hard to sell when the market is on the rocks.

Instructions

  • 1

    Assess your investment strategy before buying low priced stocks because it is this strategy that will decide what stocks will give you reward in the short or longer run. You should be aware that companies having low priced stocks are usually weak when it comes to dealing with market pressures and they often go bankrupt. So, do a thorough market research before stuffing your portfolio with penny stocks.

  • 2

    Get in touch with a brokerage service. Due to the growing use of Internet these days, it has become pretty easy for investors to get in touch with brokerage services as you can open an online account and start trading like a pro. But, be mindful that if you buy penny stocks without getting in touch with a live broker, you will not have most of the featured services like consultation, regular analysis and updates about other cheap stocks, and other assistance that helps your trade carefully.

    You can check with sites like TD Ameritrade and E-Trade. These sites allow to sing up with them and create an account. The account requires a nominal fee and little deposit to get you started. Accounts like these are usually no-frill services, offering no consultation and expert advice. Once you have created an account, you can track the prices of stocks and buy them according to your plans.

  • 3

    Familiarize yourself with over-the-counter shares trading. Over-the-counter stock trading is for people who want to buy penny stocks. Penny stocks are usually not sold at big stock exchanges, largely due to their volatility and bad reputation among big investors.

  • 4

    Do your own research. Unless you dig deeper into what you are doing with your trading, you cannot reap benefits in the long run. Familiarize yourself with how cheap stocks work and how you can benefit from their fluctuating prices.

Leave a Reply

Your email address will not be published. Required fields are marked *


seven + = 16